Spiffbet ramps up M&A spree with Goliath Casino acquisition
Proposed deal accepted by 84.3% of Goliath Casino shareholders as operator continues consolidation push
Spiffbet AB’s acquisition drive shows no sign of abating after the Stockholm-based gambling supplier agreed to purchase online gaming brand Goliath Casino.
Goliath Casino was founded in 2018 with a focus on emerging markets, while net gaming revenue amounted to SEK15m in 2019, although that figure is expected to be significantly lower in 2020.
Goliath is primed to make a positive contribution to Spiffbet Group profit during the second half of 2020, alongside the Metal Casino brand, which was also acquired in March.
The purchase of Goliath is partly financed by a new share issue of just under SEK0.9m (£79,000) aimed at a group of select investors.
Shareholders in Goliath will receive approximately 3.8% ownership in Spiffbet upon full membership once the deal completes.
The acquisition is supported by Goliath’s board of directors and has been accepted by 84.3% of shareholders.
The offer is conditional on Spiffbet receiving acceptance from shareholders representing at least 90% of all shares and votes in Goliath, with further shareholder support expected in August.
Goliath has 42 shareholders and is not listed on the stock exchange, while Spiffbet is listed in Sweden with a market cap of £7.3m.
If the deal completes, a maximum of 6,632,331 Spiffbet shares will be issued, corresponding to a value of SEK2,656,793 (£232,454) based on a share price of SEK0.401 (£0.04) per share in Spiffbet.
“The acquisition of Goliath strengthens our position in online casino and is an important part of our acquisition plan,” said Spiffbet CEO Henrik Svensson.
“Through Goliath, Spiffbet gets access to a new brand that is internationally viable and that we can develop and expand into new markets.
“Furthermore, the coordination benefits with Metal Casino are clear. Goliath fits in well with our business and complements our market presence with a different profile,” he added.
Goliath chairman of the board Claes Wenthzel said: “Through the acquisition, Goliath gets a fresh start and can continue to develop and be part of a larger group of companies where other brands are included.
“Spiffbet has strong support from its owners to be the locomotive in the consolidation that is taking place in the gaming industry and I look forward to being a part of this journey.”